Nvidia reportedly in talks to buy chip designer ARM for $32 billion

Nvidia’s fabless business model would be a perfect fit for ARM

 Nvidia chip on a white background

Graphics card manufacturer Nvidia is in advanced talks to acquire chip and software designer ARM, according to a Bloomberg report. Just four years ago, SoftBank Group Corp scooped up the surging chip designer for $32 billion. 

Insiders told Bloomberg on a condition of anonymity that Nvidia and Japan-based SoftBank are looking to seal the deal within a few weeks. According to the same insiders, Nvidia is the only suitor at this point. 

With Nvidia being an active customer of ARM, the deal will likely come under severe scrutiny by antitrust regulators. 

Many Arm licensees may have a thing or two to say about any acquisition too, including Apple, Qualcomm, AMD and others. These licensees would demand continued equal access to the ARM instruction set, which was what led to SoftBank stepping in to purchase ARM four years ago. 

Despite the potential scrutiny, ARM would fit perfectly in Nvidia’s fabless business model. A fabless model is when a chip manufacturer outsources semiconductor fabrication to foreign factories while focusing on in-house R&D.

Plus, with ARM extending its reach into smart cars, data centers and networking gear, this acquisition would further strengthen Nvidia, which recently overtook Intel as the most valuable US chip manufacturer

There are no estimates on how much money will change hands during the acquisition. New Street Research LLP estimates Arm’s 2021 IPO potential at $44 billion and its estimated 2025 valuation at $65 billion.  

Insiders stressed that despite the effort to close the deal quickly, it could fall apart before it becomes official. 

Nvidia, SoftBank and ARM haven’t commented on this reported buyout. 

Featured Resources

Defeating ransomware with unified security from WatchGuard

How SMBs can defend against the onslaught of ransomware attacks

Free download

The IT expert’s guide to AI and content management

How artificial intelligence and machine learning could be critical to your business

Free download

The path to CX excellence

Four stages to thrive in the experience economy

Free download

Becoming an experience-based business

Your blueprint for a strong digital foundation

Free download

Recommended

Nvidia GeForce RTX 3090 review: Caught between two worlds
components

Nvidia GeForce RTX 3090 review: Caught between two worlds

9 Sep 2021
Nvidia GeForce RTX 3080 review: A force to be reckoned with
components

Nvidia GeForce RTX 3080 review: A force to be reckoned with

7 Sep 2021
Nvidia GeForce RTX 3060 review: Big things in a small package
components

Nvidia GeForce RTX 3060 review: Big things in a small package

3 Sep 2021
7 most powerful computers of all time
Hardware

7 most powerful computers of all time

26 Aug 2021

Most Popular

Zoom: From pandemic upstart to hybrid work giant
video conferencing

Zoom: From pandemic upstart to hybrid work giant

14 Sep 2021
What are the pros and cons of AI?
machine learning

What are the pros and cons of AI?

8 Sep 2021
Hackers develop Linux port of Cobalt Strike for new attacks
Security

Hackers develop Linux port of Cobalt Strike for new attacks

14 Sep 2021